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DECISION No.970/1997/QD-TTg OF NOVEMBER 14, 1997 RATIFYING THE PLANNING FOR DEVELOPMENT OF THE CEMENT INDUSTRY TO THE YEAR 2010

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to Decree No.42-CP of July 16, 1996 of the Government issuing the Regulation on the Investment and Construction Management and Decree No.92-CP of August 23, 1997 on amendments and supplements to a number of articles of the Regulation on the Investment and Construction Management;

At the proposal of the Ministry of Construction in its reports No.626/BXD-VLXD of May 26, 1997 and No.1311/BXD-VLXD of October 4, 1997 submitted to the Prime Minister;

At the proposal of the Ministry of Planning and Investment in Official Dispatch No.7017/BKH/CN-VPTD of November 5, 1997,

DECIDES:

Article 1.- To ratify the planning for the development of the cement industry to the year 2010, which has been elaborated by the Ministry of Construction with the following principal objectives, viewpoints and norms:

1. The objectives of the cement industry till the year 2010

The development objectives of the cement industry till the year 2010 are: To satisfy the cement consumption demand (in terms of quantity, types and quality) of the domestic construction, and at the same time to spare a part for export in order to earn foreign currencies for debt payment and expanded re-production in the subsequent years; to gradually make Vietnam�s cement industry a spear-head one with modern technology of a level equal to that of regional countries, thus contributing to the economic growth and successful implementation of the policy on national industrialization and modernization.

2. Regarding viewpoints on the planning for development of the cement industry to the year 2010

On technology: To apply advanced and modern technology with high automation in order to save raw materials, fuel, electricity power and production supplies; to ensure the environmental protection up to the Vietnamese and international standards. To apply technologies capable of producing high-quality cement, then proceed to produce cement largely of PC40 type by test method and according to standard ISO 679-1989.

On production scale and capacity: To combine large-, medium- and small-scale production to fully exploit capacity of the existing blast-furnace cement plants, to put them into a synchronous system so as to make full use of the local advantages in materials, market, labor force... especially for the mountainous and Central Highland provinces.

On the planning: The construction of cement-producing establishments must be based on a careful evaluation of domestic and regional market demands, natural resources, infrastructure conditions, capability to mobilize investment capital, managerial level, so as to be able to rationally determine the scale, location and duration of operations of these establishments.

On capital mobilization: To mobilize foreign investment capital in a rational manner while ensuring the leading role of the domestic enterprises, especially the State enterprises. Depending on the characteristics of each project, each locality and each specific period, to determine the investment forms (domestic investment or joint venture) according to the above-said guideline.

To ensure the harmonious and synchronous combination between the production and consumption, and among the related branches and sectors such as: mechanical engineering, transport, supply of technical materials, infrastructure construction, so as to fully meet the cement demand of economic sectors and people. To exploit and make full use of the support from concerned branches, and at the same time facilitate the development of branches.

To develop the cement industry in close association with the protection of the national security and defense, cultural and historical relics, beautiful and scenic places of the country and the surrounding environment.

3. The norms of the planning

a/ The norms of cement production technology: The projects for investment and development of the cement industry to be executed in the period from now to the year 2010 must meet advanced norms regarding the consumption of materials and raw materials, thermal energy, density of dust in exhaust, noise intensity, automation ratio, labor productivity...to ensure high product quality, low production costs and capability of the product to compete with the regional countries� cement.

b/ The designed capacity norms of the cement industry in the 2000-2010 period:

Year 2000 2005 2010

Million tons 24.35 34.55 54.55

c/ The cement output norms in the 2000-2010 period:

Year 2000 2005 2010

Million tons 18-20 27-30 41-45

Expected export 1.5-2 2-4 3-5

d/ The proposed list and schedule for construction of cement plants as specified in the attached appendices

The proposed list of establishments to be constructed after the year 2000 is only an orientation, the Ministry of Construction shall base itself on this orientation and take into account each period�s practical conditions so as to make necessary adjustments and submit them to the Prime Minister for consideration and decision.

Article 2.- The inter-branch development requirements and measures for the implementation of the planning

1. To develop the cement industry, there should be synchronous investment solutions for transport and communication, manufacture of parts and equipment and production of fire bricks, etc.

- To assign the Ministry of Construction and the Vietnam Cement Corporation to coordinate with the Ministry of Industry and the Ministry of Planning and Investment in working out plans for domestic manufacture of parts and components on the basis of making full use of the available capabilities of all ministries and branches, so as to take full initiative in construction and save investment capital.

- To assign the Vietnam Cement Corporation to finalize the plan for fire brick production in service of the cement industry. In the immediate future, the fire bricks (including alkaline fire bricks) produced by the being-constructed Cau Duong plant should be used as import substitutes.

- To assign the Ministry of Communication and Transport to coordinate with the Ministry of Construction in drawing up a comprehensive plan for communication and transport development in service of the cement industry (including transport means, loading and unloading means, cement freight reception and distribution stations, river ports, sea ports, etc.)

- To assign the Ministry of Industry to conduct inspection, survey, exploration and assessment of reserves of raw materials for cement production with high reliability to serve in time the drawing up of five-year plans and annual construction investment projects in a steady manner.

- To assign the Ministry of Education and Training to coordinate with the Ministry of Construction in working out program for training of engineers and skilled workers, meeting development requirements of the cement industry.

- To assign the Ministry of Trade, the Ministry of Construction, the Ministry of Finance, the Ministry of Planning and Investment and the Vietnam Cement Corporation to take initiative in seeking foreign outlets in order to earn foreign currencies for payment of debts and for the import of spare parts that have not been manufactured in the country, and seeking domestic and foreign capital sources, including preferential loan capital to meet the investment capital need of the cement establishments.

- To assign the Ministry of Finance to study an overall plan in respect of taxation, interest rates and loan terms suitable to characteristics of the cement industry.

Article 3.- The Ministry of Construction and the Vietnam Cement Corporation shall base themselves on the objectives, viewpoints and norms of this planning to work out five-year plans for the branch�s investment and development suitable to specific socio-economic situation of the whole country in each five-year period.

Article 4.- The Ministry of Planning and Investment, the Ministry of Construction, the Ministry of Industry, the Ministry of Communication and Transport, the Ministry of Science, Technology and Environment, the Ministry of Defense, the Ministry of Culture and Information, the Ministry of Education and Training, the Ministry of Trade, the Ministry of Finance, the General Land Administration, the State Bank of Vietnam, the People�s Committees of the concerned provinces and cities directly under the Central Government and the Vietnam Cement Corporation shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister

NGO XUAN LOC